What is Friendly Fraud (CNP)?

Card not present (CNP) credit and debit card transactions provide the perfect environment for what’s commonly referred to as friendly fraud. A CNP transaction as “a payment card transaction made where the cardholder does not or cannot physically present the card for a merchant’s visual examination at the time that an order is given and payment effected, such as for mail-order transactions by mail or fax, or over the telephone or Internet.” Friendly fraud “ocurs when a consumer makes an online shopping purchase with their own credit card, and then requests a chargeback from the issuing bank after receiving the purchased goods or services.“